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Post-FOMC Update: Stocks, Bonds, Bullion Tumble; USD Soars, & NASDAQ Breaks
The USD surged and Treasury bond prices and precious metals tumbled instantly on the FOMC's statement but stocks decide it was time to ramp to VWAP (and VIX was hammered lower). After the initial knee-jerk, stocks caught back down to the reality of the other markets as it appears the investing public chooses to "sell the news" on the basis that the Fed removed the 'tightening conditions' language. The only question now is just how much of November, December, and January's seasonal hope has been pulled forward into the last few days.
Pre-FOMC: S&P Futs 1761, VIX 13.98%, 10Y 2.48%, Gold $1353, USD 79.46
Current: S&P Futs -5, VIX unch, 10Y +5bps, Gold -$12, USD +0.4
- 1401ET - *NASDAQ BX INVESTIGATING ISSUES WITH A NUMBER OF CUSTOMER HOSTS
- 1435ET - *NASDAQ BX SAYS CUSTOMERS ABLE TO DO SO CAN FAIL OVER TO BACK-UP
VIX was sold into the meeting and after (as we suspect hedgers lifted they hedgs AND their underlying exposure into the equity market kneejerk rally)...
and S&P futures were levitated instantly to VWAP (and again) before collapsing...
The mainstream is confused - The Fed gave us what we wanted so why is it all falling apart?
The Fed removed "but the tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement in the economy and labor market.." from the statement below:
The Committee sees the downside risks to the outlook for the economy and the labor market as having diminished, on net, since last fall, but the tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement in the economy and labor market..
Implying less room for moar QE... and as WSJ's Hilsenrath noted:
Taken together, the Fed isn’t taking a December adjustment to the bond-buying program off the table. But that comes with the strong caveat that it depends on whether the economy is living up to its expectations. As part of that assessment, Fed officials will be updating their economic forecasts in December and will need to make a judgment about whether their projection of accelerating economic growth in 2014 is likely to be met.
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Guys, don't worry, they got this.
shit acts like it expected an $15B Untaper to $100B per month.
... HUI finally got the memo.
Exactly.
Mr Markets looked at the Status Quo and decided it Is For All Intents and Purposes, Tightening Policy.
Go Janet, Go!
Oy yoy yoi!
Yields spike on... no taper. What would happen if they did taper? This is the definition of losing control of the bond market.
Oh, and any humans or organizations around the planet reading this... now would be a good time to dump your US Bonds. Have a nice day!
This move tis but temporary. One headline justified by saying Fed hinted taper in December is possible.
In September, they said taper in October is possible.
When does the idiot village wake up and see a boy that cried wolf? Perhaps that is when the wolf finally does arrive? Nah.. the wolf is dead. The village is just too dumb to know it.
Already starting to buy the dip?
Live Spot Gold Chart: http://www.pmbull.com/gold-price/
I'm already seeing some bigger green bars.
Remember, the engineered smashes hold for shorter and shorter periods of time.
Silver looking a little bouncy now too.
Live Spot Silver Chart: http://www.pmbull.com/silver-price/
Is the village waking up?
I'm totally confused now.
So moar money printing = bad news / strong dollar now ??????????????????
If nobody in "the village" is hold U.S. paper, will it matter? The wizards of finance have created a world for themselves (for now). The question you should be asking is what happens to assets priced in dollars and the dollar itself when no-one on earth, except the wizards of finance, what that paper.
Take me to your leader! Taper was never going to happen, after the debacle around the 'test taper talk', we all knew that, pffft.
Now we'll be Gellin' with Yellen, now that is like the blind leading the blind?! This ought to be right much fun to watch with some soda and popcorn, yay!
@ swanpoint
+ many, many
"Untaper", wow, I want to use that one! Excellent!
As Cartman (South Park) would say: "I'm festively plump".
Gold smashed, dollar defended on non-event events. Feel like i'm watching Rocky 12 at the theater.
P.S. Shanghai called Ben and wanted to say TY
Their is an unusual color on my screen that just doesn't make any sense. Bernanke needs to get on this
What a bunch of sniveling cowardly bastards. Even if GDP were -10% they would still speak of it as "the pace of improvement slowed......". Too afraid to call it what it is.
A "healthy economy" as the objective point for tapering is a non starter, because such an economy is totally subjective and open to various degrees of interpretation.
They will NEVER taper, period. The noise in the middle is all bullshit and fairytale lies to keep the system alive.
The whole point of the banking cabal's orchestration is to make sure that a "healthy economy" is forever obliterated. Their goal is to equalize the wealth between the 1st world nation of the U.S. and the 3rd world nations. This will not be accomplished by bring the 3rd world up to 1st word status but by taking the U.S. down to banana republic status. Seems they are right on track though they may need to start putting these damn "bloggers" in GITMO or Abu Graib so that the sheeple continue to graze on sanctioned propaganda delivered via the CIA / Corporate controlled MSM.
"Quick, shank gold and then we'll resume the stock melt-up."
Full throttle Captain Yellen. The United States is the unsinkable ship.
As usual the move was before the fed meeting. Next up the fed will make the case for moar. We are headed for 120 billion a month.
That's only a 50% increase. Foodstamp nation will demand MOAR.
He's got a point, Doc. Maybe a little extra on top- you know, just in case.
There is no doubt in my mind that the numbers will get larger from here on out. We have killed off what little goodwill we have left, and the reserve currency of the world is on it's deathbed. The only option they have left is to print until their eyes bleed and their fingers are bloody stumps from hitting CTL-P.
At least if we got to see some of this bleeding...we'd have something to cheer for...
Hold your horses doc, at least wait for the dismal "all important" christmas selling season to get under way before wall st ask's bernanke claus for their christmas present of 120b/mo
Must increase QE, 85B not enough anymore.
You guys have it totally right..they will have to increase the amount of printing. The addict has reached his tolerance level and no longer feels the high..he needs MOAR to feel the buz!
The elegant horror of a liquidity trap playing out right in front of our eyes. And yet it works every single time, even if you know you're in it.
Amazing. Just amazing.
If someone would like to explain this to Krugman, I volunteer to full-nelson him so he can't plug his ears.
Covered short, flat.
You covered a short position EVEN! You are either very smart or very lucky
How typical. Now I have clean all the vomit off my keyboard...
So, 10y rising BECAUSE they are buying bonds to keep interest rates down?
Full Retard cannot be far away.
pods
Full Retard was three offramps ago.
oh market just become realy spoiled. 85b is just not enough
this will be short lived. better belly up and btfd boyz.
I'm with you, Buzz...
This is a flight of fancy.
Janet is no more a hawk than Ben and if anything, more of a dove.
The economy is not doing fuck all.
The "stasis" decision is simply to allow Janet to take over, let Ben drop off the radar....
Every Fed Chairperson transition this has happened.
Every single one.
Which aren't many, but is par for the course.
Its different this time, the Team going wait an extra 15 minutes to bang the ho's
2000 or bust on the SnP for me. All the bubble talk in the msm confirms that we go higher. The banks want people to sell which is BULLISH.
Forward!
It can only go higher for perpetuity, right?!
/
correct comrade! the glorious amerikkkan fascist party will triumph over evildoers and short sellers.
PPT will get to work here shortly.
That 100 point dip was a great buying opportunity, but it's already in the rear view window.
Those lucky ducks who got in will lose .05% less of everything.
I'm puzzled by the growth in the economy meme the Fed keeps putting out.
30% collapse in orders, abysmal retail sales, no inventory to speak of, yet we have an expanding economy.
Kind of like telling a group of girls you have a 12" dick, you might get a real crowd going at a club for a little while, until one of them figures out you're exaggerating by 9".
In the case of Ben and the Fed it's exaggerating by about 11 15/16"
With Yellen it's the effect of her accidentally walking into a bull dyke lesbian bar and proclaiming she likes men.
No taper is the new taper. Soon, untaper will be the new taper.
I guess the market was looking for an increase in purchases...which means do nothing, is a taper...Dumb ass Fed is going to have to go big or go home from now on.
This process will accelerate going forward. Soon, the market will be expecting ever larger quantities and Mr. Yellen (All hail!) will provide.
Niggaz please. Ben got dis. Green close.
POMO @ $170 billion per month or gtfo.
Where's Beaks? Where the hell is Beaks?
So I guess stawks are throwing a tantrum that their dosage is not being upped? Adapted to the $85 billion and need moar?
Uh oh....
Bonds too - oh oh. That's the problem with being a junkie, the dose you need to maintain just keeps going up.
The Fed Bank is a "witchcraft" operation, not a monetary operation. Come to think of it so is Hollywood and DC. Is there a connection in all this make believe, like one small gang that specializes in it?
It's five years of QE and they still do not see enough economic growth to take the foot off the QE gas pedal. Yet they continue on unabated and unchallenged while our reserve currency gets thrown away. Most Americans would find this behavior haphazard in any other line of work. But at the Fed it's apparently not even worth getting upset about the continued failure. All in lockstep off the fucking cliff.
The people who understand what is going on are likely in bed with the Fed. Those who don't understand don't care.
guys...my broker just called me with a hot hot tip. BTFDUbitch he says. Know what though? I'm down 66% this year on my short-folio and want to lose it all. AMZN and LULU puts. Cruising for a bruising.
WTF? This market action is mind-boggling. Who drives up silver 2.5% before the Fed announcement, presumably in anticipation of no taper, and then sells it off when no taper is announced?
'WTF? This market action is mind-boggling.'
Oh c'mon. You know the drill. If silver spot spikes before an FOMC announcement, it will be down post-FOMC. Likewise, if it is down pre-FOMC, it will be higher post-FOMC.
News? Rumors? Fundamentals? Technical charts? Don't mean a thang.
I saw silver spot up over $23 earlier today and knew what was coming, AND I DON'T EVEN TRADE THE DAMN THING. The market telegraphs where it is going, especially on FOMC announcements. You can either trade accordingly or do what most of us do - don't even get within 50 feet of the bloodsoaked, chum-filled, shark infested waters know as the Comex.
New Normal: No Taper and US Dollar is Up and Gold is Down ... for how long this time?
Gold COMEX Claims Per Deliverable Ounce Rises Above 55 at These Prices
We found it very positive that with more unleashed attacks on Gold - in order to redeem physical Gold from GLD ETF holdings - it is more and more difficult for Gold market manipulators to keep it under $1300. Physical demand is pushing the price right back up. Goldman Sachs clients are not doing very well if they Sold their gold below $1300 following the House Gold Sell Call.http://sufiy.blogspot.co.uk/2013/10/comex-claims-per-deliverable-ounce.html#
Long NUGT sub-51, no stop loss, sell stop 57. The door is open gentlemen.
So the ponzi scheme is ending. It will be a smooth landing. HAHAHAA yeah I cant say anything like that and not laugh
So some of the coke heads were looking for the pace of bond purchases to be bumped up to $100 billion??!!. Everyone should know that the bernank is saving that move for the boris yeltsin .... err, I mean, janet yellen led fed.
This is unbelieveable. A trully unstable system. When the obvious path is slapping people in the face (how many times can the boy crying wolf say "We will untaper" and be believed) there is a knee jerk reaction. This is full-retard x full-retard.
When things do start to sell off, it will be a blood bath and the margin calls will make it unprecedented. The plunge protection team will be completely overwhelmed. They will wonder should we save the bond market or the stock market and while they consider answering the question -- it will all be over.
Stack boys, stack.
More people in government personally hold stocks than bonds, my guess is they'll throw cash at stocks to save themselves, and once they've sold it goes kaboom.
You're right though, when this thing goes... it's going to be ugly. I've been trying to prepare myself mentally because I expect that we'll see some monster takedowns on AU right before or during the event due to those margin calls you mention.
It appears the good ship Lollipop continues unabated.
"Quick cap'n, smash everything that matters! Full steam ahead"
Wake me up when....nevermind, that means I would probably wake up a senior citizen.